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It assumes a number of things.

First, that the stock chosen does proportionately better after the market has turned.

Secondly, that the stock chosen in the present downturn has (a lot) further to fall.

I think there are equities that have a low downside risk in the present market that deserve a strong consideration for long term investors.  I would put PDN in that category: Minimal debt, strong cash reserves, excellent uranium reserves, and a uranium market that has very little downside and a strong (known) upside.

I would avoid any equity that has a debt position that could not be covered by present cash flows, or refinancing arrangements that might not be covered in this tight market.

As the world will remain a strong consumer of energy, regardless of the economic climate, I will target energy-based equities ahead of all others over the next 6 months.

Having said that, I snuck into MRE and will have a substantial holding as a result of their recent 30cps offering.  If other "bargains" come along I will consider more speculative buys on a case by case basis.